Illinois Cracks Down on Unlicensed Online Gambling

Illinois authorities have stepped up enforcement against unlicensed online gambling, issuing more than 60 cease-and-desist letters to companies allegedly running illegal casino and sweepstakes platforms. The Illinois Gaming Board (IGB), coordinating with the Attorney General’s Office, is targeting operators that allow Illinois residents to play games of chance online.

The letters instruct companies to block Illinois users from accessing their platforms or stop offering prizes, warning that failure to comply could result in civil or criminal penalties. Offering games of chance that award money or items of value via the internet violates Illinois criminal law unless conducted by licensed operators.

Legal Limits on Gambling

State law allows gambling only at licensed riverboat casinos, land-based casinos holding an owner’s license, racetracks with organizational gaming licenses, sportsbooks licensed under the Sports Wagering Act, and video gaming licensees under the Video Gaming Act. Illinois prohibits internet-based gambling operations.

“Illegal online gambling operations threaten consumer protections, undermine responsible gaming safeguards, and are antithetical to the public’s interest in regulated gaming,” said Illinois Gaming Board Administrator Marcus D. Fruchter.“The IGB will continue to evaluate all available regulatory and law enforcement tools to combat illegal gambling and to protect Illinoisans.”

Attorney General Kwame Raoul added, “The law is clear: Gambling in Illinois must be properly licensed and regulated. Unlicensed gaming operators put Illinois consumers at risk and undermine the integrity of our regulated gaming market. We will continue to work with the Illinois Gaming Board to protect our residents and hold illegal operators accountable.”

Sweepstakes Casinos Targeted

The IGB also issued 65 letters to sweepstakes casinos, including VGW, Modo, Fliff, High 5, and Stake. The letters warn: “The IGB demands that you block Illinois residents from accessing your services or discontinue offering cash, gift cards, and other prizes through your service. Failure to do so may subject you, your affiliates, and business partners to civil or criminal penalties.”

VGW brands Chumba Casino, Luckyland Slots, and Global Poker received letters, excluding Luckyland Casino. Other operators include ACE, Crown Coins Casino, Gold Rush City, Jackpot Rabbit, JefeBet, McLuck Casino, Pulsz, Sportzino, WOW Vegas, and Zula Casino. Many recently exited Tennessee after similar directives, though ACE remains active.

Legislative Action and Consumer Protections

Lawmakers have proposed legalizing online casinos, but sweepstakes platforms remain prohibited unless licensed. SB1705 would classify sweepstakes casinos as gambling devices, making operation a felony. Illinois has also targeted prediction markets, sending letters to Kalshi, Robinhood, and Crypto.com to stop offering sports-related contracts.

Meanwhile, sportsbooks warn that higher taxes could push users toward unregulated markets. The Sports Betting Alliance has filed a lawsuit challenging Chicago’s new sports betting tax.

Illinois Representative Edgar Gonzalez Jr. has revived efforts to legalize online casinos with House Bill 4797, which would allow licensed operators to offer up to three online casino skins, taxed at 25% of adjusted gross gaming revenue and restricted to residents 21 and older.

Source:

“Illinois Gaming Board and Attorney General’s Office Issue more than 60 Cease-and-Desist Letters to Illegal Online Casino and Sweepstakes Operators”, illinois.gov, February 5, 2026